Workforce Issues As discussed in the Choosing the Right Location section of this Entrepreneurship Guide, your labor pool will have a dramatic on the successs of your business. From start-up through every significant phase of growth, the way in which you relate to your employees as a business owner or manager will affect your overall business health. In the following pages, you will find tips on where to find your employees, proper procedures for hiring and terminating your employees, insurance tips, labor and safety issues, and Drugfree Workplace information. Allen, Kathleen R. Launching New Ventures : An Entrepreneurial Approach. 4th ed. Boston: Houghton Mifflin College Division, 2006. U.S. Small Business Administration. 02 Jan. 2009 <www.sba.gov>. - 64 -
Where to Find Your Labor Force Georgia Department of Labor The Georgia Department of Labor is an agency that can assist you in finding employees. The GDOL offers an abundance of resources, including the Georgia Works program mentioned in the following section. For more information on how the GDOL can help you, call the Rome DOL office at 706-295-6051 or visit their website at http://www.dol.state.ga.us. Georgia Works In response to a weak economy and lengthening terms of unemployment, Georgia Department of Labor Commissioner Michael L. Thurmond created Georgia Works, an innovative training initiative designed to stimulate job growth and hiring. Georgia Works allows laid-off workers who qualify for unemployment insurance (UI) benefits to receive on-site workplace training, regular UI benefits, and a special training allowance. This allowance is intended to defray some of the costs associated with training such as childcare, transportation, tools, and work clothes. Employers in the Georgia Works program provide training for a maximum of 24 hours per week for up to eight weeks. Upon successful completion, trainees receive certification of acquired job skills and will be considered for employment. Georgia Works enables businesses to audition potential employees, Thurmond said, and it helps the unemployed gain access to training and, potentially, new jobs. What this does is create a transitional period between unemployment and employment. Job Seekers may contact any GDOL Career Center for more information about how to become a Georgia Works trainee. Employers who would like more information about how to participate in the program as a worksite may contact the Department of Labor here in Rome, Georgia. - 65 -
Georgia Work Ready As a member of the Technical College System of Georgia, Coosa Valley Technical College creates a regional talent pool targeting existing strategic industries in Georgia. Through the Georgia Work Ready program, skills that employers consider essential to job success are measured and documented by the Georgia Work Ready Certificate. Certified skill levels are then matched with existing or customized job profile requirements. The Georgia Work Ready Assessment Program allows employers to make quick comparisons between the job requirements of their open positions and the skill levels of their applicants. Providing a portable skills credential, the Georgia Work Ready Certificate is easily and universally understood and valued by employers and certificate recipients alike. The Georgia Work Ready assessment is available to all Georgians at no cost. For more information about the Georgia Work Ready program, visit the website at http://www.gaworkready.org. Classifieds There are many other resources through which one can find employees. The first things that typically come to mind are the classified advertisements in local newspapers. You can place ads in these publications for week-long and even month-long periods. Contact the publication you wish to use for more specific information. The Chamber can provide a list of print and electronic media resources. Staffing Agencies There are many temporary personnel agencies located in the area which also have access to employees. For a list of local staffing agencies you can also contact the Greater Rome Chamber of Commerce or visit the Business Directory at the Chamber website, www.romega.com. www.romega.com The Chamber website, www.romega.com, features a jobs posting page. Simply click on the Jobs tab located at the top of the homepage to search recent local job postings by category or posting date. Chamber members can post their current job openings for free as a membership benefit! - 66 -
Application, Hiring and Termination Practices There are basic ground rules to hiring and firing employees. There are legal requirements to acquiring or terminating employees. If handled incorrectly, personnel issues can result in legal problems. These legal problems can be large enough to close your business. It is important to make sure that all your bases are covered. In addition to the DOs and DON Ts listed below, contact the Georgia Department of Labor for more on correct hiring and firing policies. Application and Hiring DON T: Don t ask obvious questions. Do not ask questions regarding sex, age, race, etc. or anything related to these areas. These are sensitive areas and cannot be used as discriminating factors. Some applicants may believe that all gathered information is used. It is for this reason that you should not ask these questions. It is best to avoid these topics so as to eliminate all possibility of legal problems. Don t write on the job application form. Any notes taken during interviews should be made on photocopies or other paper. This allows you to preserve the original application without marring it for your permanent records. DO: Do limit your interview questions to job duties. There is no reason to ask questions that do not apply to the responsibilities of the position. You may ask if an applicant has any barriers to completing the duties. Do not ask questions like Do you have children? or Are you married? Small talk is acceptable if the interviewer is careful. Do not venture into conversation that might produce seemingly discriminatory information. Do make sure all company procedures follow employment statutes. Have your advisors or attorney review your system for application, hiring, and termination before you begin hiring and periodically thereafter. DO EDUCATE YOURSELF!!!!!! The best way to prevent problems is to be familiar with the law. When you are in doubt about any issue concerning labor or safety, contact the Georgia Department of Labor. See the Resource Directory at the end of this guide for contact information. - 67 -
TERMINATION DOs: Do review company policies. If you have not yet developed company policies regarding application, hiring, and termination, call the GDOL. Make a checklist of your procedures. Make sure that you have followed the rules in the firing process. If you have not completed your checklist, YOU SHOULD NOT TERMINATE THE EMPLOYEE YET. Take care to finish all steps in the process to alleviate any questions and possible legal repercussions. Do have a stated code of expected employee behavior. Many employers face problems due to unclear expectations of conduct. It is easier to prove reasons for termination if such a code is in place. This documentation will be helpful if you are faced with paying restitution because it will show that you had sufficient cause to terminate the employee. Do conduct an exit interview. This allows you to tie up any loose ends. Final paychecks can be issued, and company property (e.g. keys, paperwork, and files) can be returned. Ask the employee what he/she liked or disliked about your company. Ask for feedback on aspects of your company of which this person has knowledge. This person might be a bit more forthcoming with problems or constructive criticisms than someone who still works there. Do keep termination of an employee between you (management) and the employee. The fired employee will appreciate your discretion in this matter. Termination should not be discussed with other employees. Privacy can help you avoid harsh feelings and legal repercussions. Do have employees sign a release. If you are offering the fired employee severance pay or anything else of value, have him/her sign a release of liability to the company. This may protect you in case of legal action. NOTICE: The contents of this publication have been obtained from multiple sources The contents are presented for informational purposes only and should not be considered in any way legal or professional assistance. We encourage you to seek the advice and counsel of a licensed professional when dealing with legal and financial matters. While care has been taken to provide accurate, up-to-date information, the information presented has been collected from numerous sources and is subject to errors and changes and should be further researched for updates and accuracy. - 68 -
Insurance for Small Business Insurance Buying business insurance is among the best ways to prepare for the unexpected. Without proper protection, misfortunes such as the death of a partner or key employee, embezzlement, a lawsuit, or a natural disaster could spell the end of a thriving operation Ranging from indispensable worker s compensation insurance to the relatively obscure executive kidnapping coverage, insurance is available for nearly any business risk. Considering the multitude of available options, business owners must carefully weigh whether the cost of certain premiums will justify the coverage for a given risk. General Liability Many business owners buy general liability or umbrella liability insurance to cover legal hassles due to claims of negligence. These help protect against payments as the result of bodily injury or property damage, medical expenses, the cost of defending lawsuits, and settlement bonds or judgments required during an appeal procedure. Product Liability Every product is capable of personal injury or property damage. Companies that manufacture, wholesale, distribute, and retail a product may be liable for its safety. Additionally, every service rendered may be capable of personal injury or property damage. Businesses are considered liable for negligence, breach of an express or implied warranty, defective products, and defective warnings or instructions. Home-Based Business Insurance Contrary to popular belief, homeowners insurance policies do not generally cover home-based business losses. Commonly needed insurance areas for home-based businesses include business property, professional liability, personal and advertising injury, loss of business data, crime and theft, and disability. Allen, Kathleen R. Launching New Ventures : An Entrepreneurial Approach. 4th ed. Boston: Houghton Mifflin College Division, 2006. U.S. Small Business Administration. 02 Jan. 2009 <www.sba.gov>. - 69 -
Internet Business Insurance Web-based businesses may wish to look into specialized insurance that covers liability for damage done by hackers and viruses. In addition, e-insurance often covers specialized online activities, including lawsuits resulting from meta tag abuse, banner advertising, or electronic copyright infringement. Worker s Compensation Required in every state except Texas, worker s compensation insurance pays for employees medical expenses and missed wages if injured while working. Coverage includes medical and rehabilitation costs and lost wages for employees injured on the job. The amount of insurance employers must carry, rate of payment, and what types of employees must be carried varies depending on the state. In most cases, business owners, independent contractors, domestic employees in private homes, farm workers, and unpaid volunteers are exempt. Keep in mind that by participating in the Drugs Don t Work drug-free workplace program, a benefit offered for free to members of the Greater Rome Chamber of Commerce, your new business will be eligible for a 7.5% discount in worker s compensations insurance rates. In the following pages, you will find more information on the Drugs Don t Work program. Criminal Insurance No matter how tight security is in your workplace, theft and malicious damage are always possibilities. While the dangers associated with hacking, vandalism, and general theft are obvious, employee embezzlement is more common than most business owners think. Criminal insurance and employee bonds can provide protection against losses in most criminal areas. Business Interruption Insurance Some businesses may wish to acquire insurance that covers losses during natural disasters, fires, and other catastrophes that may cause the operation to shut down for a significant amount of time. Key Person Insurance In addition to a business continuation plan that outlines how the company will maintain operations if a key person dies, falls ill, or leaves, some companies may wish to buy key person insurance. This type of coverage is usually life insurance that names the corporation as a beneficiary if an essential person dies or is disabled. Malpractice Insurance Some licensed professionals need protection against payments as the result of bodily injury or property damage, medical expenses, the cost of defending lawsuits, investigations and settlements, and bonds or judgments required during an appeal procedure. Allen, Kathleen R. Launching New Ventures : An Entrepreneurial Approach. 4th ed. Boston: Houghton Mifflin College Division, 2006. U.S. Small Business Administration. 02 Jan. 2009 <www.sba.gov>. - 70 -
Labor And Safety Regulations Educating Yourself on Labor and Safety Issues The Georgia Department of Labor is available to provide consultation to new businesses in the state. The local and state departments offer educational seminars and presentations throughout the year. These classes cover a wide range of labor-related topics such as labor laws, labor issues, prevailing wages, unemployment insurance, benefits, and employment services. It would be advisable to contact the local Georgia Department of Labor (GDOL) office regarding these classes. These seminars are intended to provide you with all the information you need to prepare you for the employment aspects of running a business. You should begin these classes up to one year before your intended start-up. At these seminars you will be provided with a section of the instructional workbook. After attending a certain number of these seminars, you will have the entire workbook. The Georgia Department of Labor or the U.S. Department of Labor can help walk you through all employment and labor issues and questions. Georgia Department of Labor Rome District Office 463 Riverside Parkway, NE Rome, GA 30162 706-295-6051 US Department of Labor www.dol.gov OSHA The issuing and enforcing of occupational and safety health regulations is handled by the United States Department of Labor. The Occupational Safety and Health Administration (OSHA) is the federal agency, which administers these policies. The requirements put forth by OSHA include posting notices to employees and maintaining accurate records of employee injuries. OSHA will provide you with information on all requirements as well as related publications. OSHA policies and regulations must be posted in the workspace where all employees may see. In addition to OSHA, the U.S. government also supports the Employment Standards Administration, Mine Safety and Health Administration, Veterans Employment and Training Service, and the Pension and Welfare Benefits Administration. Each of these departments is designed to protect both the employer and employee. Similar to OSHA, each issues and enforces a unique set of requirements and regulations. Occupational Safety & Health Administration U.S. Department of Labor 1375 Peachtree Street NE, Suite 587 Atlanta GA 404-374-3573 www.osha.gov - 71 -
Drug Free Workplace Your business can become eligible for a 7.5% discount on your Workers Compensation Insurance Premiums. This is possible through the DRUGS DON T WORK PROGRAM. The Greater Rome Chamber of Commerce has information available for you about the program. Or you can find information online, through the resources listed here. Greater Rome Chamber of Commerce www.romega.com 706-291-7663 U.S. Department of Labor www.dol.gov 404-347-3573 Georgia Department of Revenue http://www.etax.dor.ga.gov 404-656-4071-72 -